PLEASE READ THE ENTIRE AGREEMENT
CAREFULLY BEFORE ENROLLING IN THE SERVICE, AGREEING
TO ACCEPT ELECTRONIC DOCUMENTS, NOTICES AND/OR DISCLOSURES
OR INITIATING ANY TRANSACTIONS.

DO NOT SEND EMAIL TO THE BANK THAT
CONTAINS ANY PRIVATE OR CONFIDENTIAL INFORMATION. YOU MAY SEND MESSAGES THROUGH
OUR SECURE SYSTEM ONCE YOU HAVE ESTABLISHED AN INTERNET BANKING ACCOUNT.

1. Scope of this Agreement

This Agreement between you and The
First National Bank of McGregor, 410 S Main, McGregor, TX governs your use of
our Internet Banking, Mobile APP and Bill Payment services (the “Service”). The
Service permits our Customers to perform a number of banking functions on
accounts linked to the Service through the use of a personal computer and the
Internet.

2. Accepting the Agreement

After you have carefully read this
Agreement in its entirety and the linked Privacy Notice, you will be asked to
accept the terms and conditions of this Agreement. When you accept these terms
and conditions, you represent and warrant that you are an
Authorized User acting with full authority, and that you are duly
authorized to execute this Agreement.

You should print and/or save a copy of
this Agreement for your records. To print, select the print function on your
browser. To save a copy of this Agreement on your computer, select “File” and
then “Save As” on your browser.

If you need help printing or saving
this document, or if you have any questions about this Agreement, please
contact our Internet Banking Customer Service Department. Our contact
information is listed at the top of this Agreement. You can obtain a paper copy
of this Agreement at any time. Updates to this Agreement will be sent
electronically as further described within this Agreement.

WHEN YOU CLICK ON THE “ACCEPT” BUTTON
BELOW, YOU AGREE TO THE TERMS AND CONDITIONS OF THIS AGREEMENT. BY ACCEPTING,
YOU ALSO CERTIFY THAT YOU ARE ABLE AND WILLING TO ACCEPT THE ELECTRONIC VERSION
OF THIS DOCUMENT. IF YOU DO NOT AGREE TO THE TERMS OF THIS AGREEMENT AND/OR DO
NOT ACCEPT THE ELECTRONIC VERSION OF THIS DOCUMENT, SELECT THE CANCEL BUTTON.

3. Definitions

Agreement – means these terms and
conditions of the Internet Banking and Bill Payment services.

Authorized User – is any individual,
agent, or sub-user whom you allow to use the Service or your passcode or other
means to access your Eligible Account(s).

Biller – is the person or entity to
which you wish a Bill Payment to be directed or is the person or entity from
which you receive electronic bills, as the case may be.

Billing Account – is the checking account
from which all Service fees will be automatically debited.

Business Day – is every Monday through
Friday, excluding Federal Reserve holidays

Business Customer – Refers to anyone
other than a Consumer who owns an Eligible account with respect to which the
Service is requested primarily for business purposes.

Business Day Cutoff – Refers to the
cut-off time for posting purposes. The cut-off time for online transactions is
based upon our Business Days and the use of Central Time Zone. For posting
purposes, we will process all transactions completed by 5:00 P.M. on the same
Business Day. Transactions completed after 5:00 P.M. will be processed on the
following Business Day. Bill Payment cut-off and scheduling times differ and are
further detailed in this Agreement.

Consumer – Refers to a natural person
who owns an Eligible Account at this Financial Institution and who uses the
Service primarily for personal, family, or household purposes.

Due Date – is the date reflected on your
Biller statement for which the Bill Payment is due. It
is not the late date or grace period.

Eligible Accounts –An Eligible Account
means any one of your account(s) to which we may allow access through the
Service under this Agreement. Only a checking account may be eligible for Bill
Payment privileges. We may make additional accounts available for Bill Payment
services from time-to-time as allowed by law or our Bill Payment Service
Provider.

You may request Internet access to any
account that you are a signer or owner. If you or your Authorized Users desire
features of the Service that allow you to initiate Bill Payments, transfers,
ACH transactions, or otherwise remove funds from an account, you must have the
required withdrawal authority over the relevant Eligible Account.
When using the Service, you agree to maintain one or more Eligible Accounts
with us and to keep sufficient balances in any account to cover any transaction
and fees that are ultimately approved by or related to the Service.

Joint Accounts – If the Eligible
Accounts added to the Service are jointly held or have multiple signers, you
agree that access to the information and all transactions initiated by the use
of your Access ID and Passcode are authorized unless we have been notified to cancel
the Service. If joint account holders use individual Access IDs, the Service
may be identified separately and you may be charged for the use of additional
Access IDs. In some cases, if your account(s) require two signatures for
withdrawal, we may only grant view privileges to your Eligible Accounts.

Laser Draft Payment – is a payment
method similar to a check written by you on your Payment Account. Billers
should receive Laser Draft Payments no later than the Scheduled Payment Date.
Funds remitted to the Biller are deducted from your Payment Account when the
Laser Draft is presented to this Financial Institution for payment. As a
result, neither this Financial Institution nor its Service Provider(s) can
control when your Payment Account will be debited for a Laser Draft Payment.

Payment Account – is the checking
account from which Bill Payments will be debited. You must be a legal owner of
any Payment Account registered for the Service.

Payment Instruction – is the
information provided by you to the Service for a Bill Payment to be made to the
Biller (such as, but not limited to, Biller name, Biller account number, and
Scheduled Payment Date).

Scheduled Payment – is a Bill Payment
that has been scheduled through the Service but has not begun processing.

Service – means the Internet Banking,
Bill Payment and Delivery services offered by The First National Bank through
its Service Providers.

Service Provider – includes any agent,
licensor, independent contractor or subcontractor that this Financial
Institution may involve in the provision of Internet Banking, Bill Payment, and
electronic Bill Delivery services.
Sub-User Administrator – Each Business Customer utilizing ACH and wire transfer
privileges must authorize a Sub-User Administrator for managing Authorized User
access to company accounts accessible through the Service. Sub-User
Administrators and/or Authorized Users may be identified in separate
agreements.

you and your – As used within this
Agreement, “you” and “your” refer to the person enrolling in the Service, owner
of the eligible accounts, as well as any Authorized Users that such person
allows, subject to the parameters of multiple user access as set forth within
the Service.

we, us, or our – As used within this
Agreement, refer to The First National Bank of McGregor and any agent,
independent contractor, service provider, sub-contractor, licensor, designee,
or assignee that The First National Bank of McGregor may involve in the
provision of the Service.

4. Basic Internet Banking and Mobile
APP Services

The
basic features currently available through the Basic Internet Banking include:

·Up to 24 months of complete Internet
transactional detail and history

·Account Inquiries for balances, rates,
etc.

·Copies of monthly Account Statements

·Transfers between your accounts at this
Financial Institution

·Secure e-mails via the Service’s
messaging system

·Secure File Transfers

·View loan balances

·Payments to loans at this Financial
Institution

·Transaction downloads into Quicken®,
Microsoft® Money

Not all services are available using
the Mobile APP.

Bill Payment services are optional. You
can request Bill Payment privileges in the online enrollment process and/or you
can add Bill Payment services at a later time by contacting our Internet
Banking Department or sending us a secure message through the Service. Bill
Payment customers also have access to electronic Bill Presentment or Bill
Delivery.

We may add or remove certain features
and/or functionality available from time to time. You can use the Service seven
days a week, 24 hours a day, although some or all features may not be available
occasionally due to emergencies or scheduled system maintenance. In addition,
access to the Service may be slower at times due to high Internet traffic or
other factors beyond our control.

5. Other Service Features

Check Reorders, Address Change, Order
Documents, Secure E-Mail & Secure File Delivery Services
Additional features within the Service include: check reorders, secure emails
for address changes, document requests, and secure file delivery. The
submission of requests, such as those for address changes, document requests,
or check reorders, will generate a secure email to this Financial Institution.
Generally, requests received through the Service’s secure e-mail feature will
be processed within one (1) to two (2) Business Days. For urgent requests, we
recommend that you contact our Internet Banking Department.

6. Commercial Internet Banking Services

Additional online features are
currently available for Business Customers. These features may be subject to
additional terms and conditions.

·ACH Credit and Debit Origination

·Direct Deposit Originations

·NACHA File Imports

·Balance Reporting

·We may add or remove certain features and/or
functionality from time-to-time. Business Customers interested in these
services should contact us for additional information.

Consumers: For a limited time, the
first 2 monthly Bill Payment fees will be waived as a way to introduce the
Service.

Bill Payment for consumer accounts does
not have a charge if actively used: this includes unlimited Bill Payments per
month on each account that has enabled this service. If bill pay is not used
for three (3) consecutive months, there is a $5 per month fee.

Business Customers: Bill pay is not
available for Business customers at this time.

For Business Customers, charges may
apply for services such as: ACH Origination, Wire Transfers, Nacha File Imports, or Repurchase Agreement Tracking. These
fees may vary and are subject to separate agreements.

Any applicable fees will be charged
regardless of whether the Service was used during the billing cycle. There may
be a charge for additional transactions and other optional services. You agree
to pay such charges and authorize us to deduct the calculated amount from your
designated Billing Account for these amounts and any additional charges that
may be incurred by you. Any financial fees associated with your standard
deposit accounts will continue to apply.

You are responsible for any and all
telephone access fees and/or Internet service fees that may be assessed by your
telephone and/or Internet service provider.

8. Requirements for Enrolling in the
Service

In
order to enroll in the Service:

·You must have an Eligible Account with
this Financial Institution.

·Your account with us must be in good
standing.

·You must be 18 years of age or older.

·You must be a resident of the United
States or its possessions.

·You must have a computer and Internet browser
that will support 128 bit encryption.

·You will need Internet access through
an Internet service provider (ISP).

·You will need access to a printer
and/or other storage medium such as a hard drive for downloading information or
printing disclosures.

·You will also need an external email
address for the delivery of electronic notices and disclosures.

Prior to enrolling in the Service and
accepting the electronic version of this Agreement, you should verify that you
have the required hardware and software necessary to access the Service and to
retain a copy of this Agreement.

If we revise hardware and software
requirements, and if there’s a material chance that the changes may impact your
ability to access the Service, we will give you advance notice of these changes
and provide you an opportunity to cancel the Service and/or change your method
of receiving electronic disclosures (e.g. change to paper format vs. an
electronic format) without the imposition of any fees.

9. Enrollment Process

You must complete the enrollment
process to use the Service. You can enroll for the Service on the Internet or
you can enroll at any of our offices. You can also print the enrollment form
accessible on our website and mail it to us at the address listed at the
beginning of this Agreement.

The Internet enrollment process
involves completing a secure online application that we will use to verify your
identity.

When you enroll for the Service, you
agree to provide true and accurate enrollment information. Our Internet Banking
Department will verify the information you submit for accuracy and proper
authorizations. You will received an invitation email
within 2 business days of your enrollment. You must use the invite code
originally selected, set up your security questions, and your sign on user name
and password.

Business Customers interested in the
commercial features of the Service should contact us directly at (254) 840-2836
or you may send us a secure message through the Service.

10. Linked Accounts

When you first enroll for the Basic
Internet Banking Service we will link all of your designated Eligible Accounts
to one Access ID. If you want to limit the accounts linked or the privileges
assigned to an account, please contact us at (254) 840-2836 or send us a secure
email message through the Service.

With the exception of sole proprietors,
Business Customers may not link personal and commercial accounts together in
this Service.

11. Signature Requirements

When any transfer, ACH, or other
Payment Instruction is initiated through the Service for your benefit, you
agree that we may debit the designated Eligible Accounts without requiring your
signature on the item and without any notice to you. Requirements for dual
signatures on checks, if applicable, do NOT apply to Bill Payments or other transfers
initiated through the Service. Any Authorized User must be authorized
individually to make electronic transfers and online Bill Payments even though
that person’s authority to make transfers by other means may still require dual
signatures.

12. Account Balances

Balances shown in your accounts may
include deposits subject to verification by us. The balance reflected in the
Service may differ from your records due to deposits in progress, checks
outstanding, or other withdrawals, payments or charges. A transfer request may
not result in immediate availability because of the time required to process
the request. A transfer request must be made before the Business Day Cut-off
time to be effective the same Business Day.

The balances within the Service are
updated periodically and the Service will display the most current “as of” date
on the “accounts” summary page. There may be situations that cause a delay in
an update of your balances. The Service will use the most current balance
available at the time of a transaction to base our approval for account
transfers.

13. Canceling or Changing Transfers

You cannot cancel a transfer after it
has been entered into the system AND the information has been processed and/or
transmitted to us through the Service; however, you can edit or change a
transfer that is still “pending”. For Business Customers, the term “transfers”
also includes ACH and wire transactions.

In
order to cancel or change a pending transfer that has not been submitted to us
for processing, use the following procedures:

1.Log in and make edits to the
appropriate transaction.

2.Edits must be made before 3:00 P.M. for
transactions to be processed the same Business Day

3.You may edit a pre-scheduled (future
dated/automatic) transaction anytime before 3:00 P.M.
on the Business Day before the scheduled transfer or payment date.

4.For transfers, you can change the
transfer amount to your available balance, or if

5.If you accidentally transfer funds, you
can schedule another transfer to move funds to back to the original account.

For Business Customers, additional
guidance on creating, canceling, editing ACH and wire transactions is available
within the Service and from our customer service department. After-cut-off
time, if changes are necessary, we may not have sufficient time to stop such
transactions from further processing. Separate agreements may detail the
required time-frames for submitting and making changes to these types of
transactions.

For assistance, you can send us a
secure e-mail through the Service or call our Internet Banking Department.
If you need our assistance on making edits to automatic/future dated transfers;
you can send us a secure email through the Service; however, we must receive
your request three (3) Business Days or more before the transaction is
scheduled for processing. If you call, we may also require you to put your
request in writing and get it to us within 14 days after the call.

14. Bill Payment and Transfer
Limitations

You may use the Service to check the
balance of your Eligible Account (s) and to transfer funds among your Eligible
Accounts at this Financial Institution. You must have sufficient funds in your
account to cover the amount of any online transfers and Bill Payments on the
scheduled payment date set for the transaction, or the transaction may not be
processed. NSF and/or overdraft charges may be incurred if Bill Payments exceed
your account balance.

Current federal regulations restrict
the number of transactions that you can make from certain types of accounts,
such as Money Market and Savings Accounts. For these types of accounts, you may
not make more than six (6) pre-authorized electronic transfers, which include
computer initiated transfers, telephone transfers, checks, and point-of-sale
transactions during a given monthly statement period. Transfers and Bill
Payments authorized by personal computer through the Service are counted toward
the six permitted monthly transfers. Bill Payments are considered third party
transfers and are limited to six (6) transactions. Federal regulations
currently place no limits on the number of transfers or Bill Payments from your
Checking, therefore this financial institution currently limits the Bill
Payment Service to only Checking Accounts.

15. Bill Payment Terms and Conditions

(A) Bill Payment Scheduling
The earliest possible Scheduled Payment Date for each Biller (typically six (6)
or fewer Business Days from the current date) will be designated within the
Service when you are scheduling the Bill Payment. Therefore, the Service will
not permit you to select a Scheduled Payment Date less than the earliest
possible Scheduled Payment Date designated for each Biller.

When scheduling Bill Payments you must
select a Scheduled Payment Date that is no later than the actual Due Date
reflected on your Biller statement unless the Due Date falls on a non-Business
Day. If the actual Due Date falls on a non-Business Day, you must select a
Scheduled Payment Date that is at least one (1) Business Day before the actual
Due Date. Scheduled Payment Dates must be prior to any late date or grace
period.

(B) Payment Authorization and Payment
RemittanceBy providing the Service with names and account
information of Billers to whom you wish to direct payments, you authorize us to
follow the Payment Instructions received through the Service. In order to
process payments more efficiently and effectively, our Service Provider may
edit or alter payment data or data formats in accordance with Biller
directives.

When the Service receives a Payment
Instruction, you authorize our Bill Payment Service Provider to debit your
Payment Account and remit funds on your behalf so that the funds arrive as
close as reasonably possible to the Scheduled Payment Date designated by you.
You also authorize our Service Provider to credit your Payment Account for
payments returned to the Service by the United States Postal Service or Biller,
or payments remitted to you on behalf of another Authorized User of the
Service.

(C) Payment Methods
Our Bill Payment Service Provider reserves the right to select the method in
which to remit funds on your behalf to your Biller. These payment methods may
include, but may not be limited to, an electronic payment, an electronic to
check payment, or a Laser Draft Payment.

(D) Payment Cancellation RequestsYou may cancel or edit any Scheduled Payment (if
processing has not begun) by following the directions within the Service. There
is no charge for canceling or editing a Scheduled Payment. However, once the
Service has begun processing a Scheduled Payment it cannot be cancelled or
edited, therefore a stop payment request must be submitted, as described within
this Agreement.

(E) Bill Payment Stop Payment RequestsThe ability of this Financial Institution and its
Service Provider to process a stop payment on a Bill Payment request will
depend on the payment method and whether or not a check or Laser Draft Payment
has cleared. We may also not have a reasonable opportunity to act on any stop
payment request after a payment has been processed. If you desire to stop any
Bill Payment that has already been processed, you must contact our Customer
Service department at (254) 840-2836.

Although we will make every effort to
accommodate your request, we will have no liability for failing to do so. We
may also require you to present your stop payment request in writing within
fourteen (14) days. The charge for each stop payment request will be the
current charge of $30.00 for such service as set forth in our applicable fee
schedule.

(F) Returned PaymentsIn using the Service, you understand that Billers
and/or the United States Postal Service may return Bill Payments to our Service
Provider for various reasons such as, but not limited to, Biller’s forwarding
address expired; Biller account number is not valid; Biller is unable to locate
account; or Biller account is paid in full. Our Service Provider will use its
best efforts to research and correct the returned payment and return it to your
Biller, or void the payment and credit your Payment Account. You may receive
notification from the Service of returned payments.

(G) Bill Payment Information
Authorization
Requests for Bill Payment privileges may not be fulfilled if this Financial
Institution and/or its Service Provider(s) cannot verify your identity and
withdrawal authority over the specified accounts. Through your enrollment in
the Bill Payment Service; you agree that this Financial Institution and its
Service Providers reserve the right to request a review of your credit rating
at our own expense through an authorized bureau. In addition, you agree that
this Financial Institution and its Service Providers reserve the right to
obtain financial information regarding your account from a Biller or your
Financial Institution (for example, to resolve payment posting problems or for
verification).

(H) Prohibited PaymentsPayments to Billers outside of the United States or
its territories are prohibited through the Service. Payments related to
gambling or other illegal activity is prohibited.

(I) Exception Payments
Court ordered payments may be scheduled through the Service; however, such payments
are discouraged and are scheduled at your own risk. In no event shall this
Financial Institution or its Service Provider(s) be liable for any claims or
damages resulting from your scheduling of these
payments. The Bill Payment Service Guarantee as it applies to any late payment
related charges is void when these types of payments are scheduled and/or
processed by the Service. Research of exception payments shall be limited to
proof of payment and/or unauthorized payments only. All other research and resolution
for any misapplied, mis-posted or misdirected
exception payments will be your sole responsibility.

(J) Biller LimitationWe reserve the right to refuse to pay any Biller to
whom you may direct a payment. The Service will notify you promptly if it
decides to refuse to pay a Biller designated by you. This notification is not
required if you attempt to make a prohibited payment or an exception payment
under this Agreement.

(K) Failed TransactionsIn using the Service, you are requesting us to make payments
for you from your Payment Account. If we are unable to complete the transaction
for any reason associated with your Payment Account (for example, there are
insufficient funds in your Payment Account to cover the transaction), the
transaction will not be completed. In some instances, you will receive a return
notice from the Service. In such case, you agree that:

1.You will reimburse our Service Provider
immediately upon demand the transaction amount that has been returned;

2.For any amount not reimbursed to the
Service Provider within fifteen (15) days of the initial notification, a late
charge may be assessed each month against unpaid amounts equal to 1.5% or the
legal maximum, whichever rate is lower;

3.You will reimburse our Service Provider
for any fees, it may incur in attempting to collect the amount of the return
from you; and

4.Our Service Provider is authorized to
report the facts concerning the return to any credit- reporting agency.

16. Bill Delivery and Presentment

This feature is for the presentment of
electronic bills only and it is your sole responsibility to contact your
Billers directly if you do not receive your statements. In addition, if you
elect to activate one of the Bill Payment Service’s electronic bill options,
you also agree to the following:

(A) Information Provided
to the Biller
We are unable to update or change your personal or business information such
as, but not limited to, name, address, phone numbers and e-mail addresses, with
the electronic Biller. Any changes will need to be made by you; contact the
Biller directly. Additionally, it is your responsibility to maintain all
usernames and passwords for all electronic Biller sites. You also agree not to
use someone else’s information to gain unauthorized access to another person’s
or company’s bill.

Our Service Provider may, at the
request of the Biller, provide to the Biller your e-mail address, Service
address, or other data specifically requested by the Biller at the time of
activating the electronic bill for that Biller, for purposes of the Biller
informing you about Service and/or bill information.

(B) Activation
Upon activation of the electronic bill feature, our Service Provider may notify
the Biller of your request to receive electronic billing information. The
presentment of your first electronic bill may vary from Biller to Biller and
may take up to sixty (60) days, depending on the billing cycle of each Biller.
Additionally, the ability to receive a paper copy of your statement(s) is at
the sole discretion of the Biller. While your electronic bill feature is being
activated it is your responsibility to keep your accounts current. Each
electronic Biller reserves the right to accept or deny your request to receive
electronic bills.

(C) Notification
Our Bill Payment Service Provider will use its best efforts to present all of
your electronic bills promptly. In addition to notification within the Service,
our Service Provider may send an e-mail notification to the e-mail address
listed for your account. It is your sole responsibility to ensure that this
information is accurate. In the event you do not receive notification, it is
your responsibility to periodically logon to the Service and check on the
delivery of new electronic bills. The time for notification may vary from
Biller to Biller. You are responsible for ensuring timely payment of all bills.

(D) Cancellation of Electronic Bill
Notification
The electronic Biller reserves the right to cancel the presentment of
electronic bills at any time. You may also cancel electronic bill presentment
at any time. The timeframe for cancellation of your electronic bill presentment
may vary from Biller to Biller. It may take up to sixty (60) days, depending on
the billing cycle of each Biller. Our Bill Payment Service Provider will notify
your electronic Biller(s) as to the change in status of your account and it is
your sole responsibility to make arrangements for an alternative form of bill
delivery. We will not be responsible for presenting any electronic bills that
are already in process at the time of cancellation.

(E) Non-Delivery of Electronic Bill(s)
You agree to hold harmless, this Financial Institution and its Service
Providers should the Biller fail to deliver your statement(s). You are
responsible for ensuring timely payment of all bills. Copies of previously
delivered bills must be requested from the Biller directly.

(F) Accuracy and Dispute of Electronic
BillNeither this Financial Institution, nor its Service
Providers are responsible for the accuracy of your electronic bill(s). This
Financial Institution and its Service Providers are only responsible for
presenting the information received from the Biller. Any discrepancies or
disputes regarding the accuracy of your electronic bill summary or detail must
be addressed with the Biller directly.
This Agreement does not alter your liability or obligations that currently
exist between you and your Billers.

17. Privacy

We understand how important privacy is
to our customers. We have taken steps to protect the privacy and security of
your personal information as well as your financial transactions with us. You
should read our privacy notice before completing the enrollment process for the
Service.

(A) Disclosure of Account Information
to Third Parties
It is our general policy to treat your account information as confidential.
However, we will disclose information to third parties about your account or
the transactions you make ONLY in the following situations:

·Where it is necessary for completing
transactions;

·Where it is necessary for activating
additional services;

·In order to verify the existence and
condition of your account to a third party, such as a credit bureau or Biller;

·To consulting firms, in an aggregate
non-personally identifiable format, for research and product improvement
purposes only

The Service utilizes a comprehensive
security strategy to protect your accounts and transactions conducted over the
Internet. Prior to activating your access to the Service, our Internet Banking
Department will verify your identity and authorization against information
associated with the Eligible Account (s) that you request to be linked to the
Service.

Access IDs and Passcodes – One of the
main security features protecting the Service is the unique combination of your
Access Identification Code (Access ID) and Passcode. During the enrollment
process, you will be asked to select a unique Access ID, and then choose a
Passcode that will be used to gain access to the Service. You determine your
own Passcode, which is encrypted in our database. Neither this Institution nor
its Service Providers have access to this information. The Service will automatically
deactivate your account after three unsuccessful login attempts within a
24-hour time frame. You may reset your passcode by contacting this Institution
for assistance.

Because
your Passcode is used to access your accounts, you should treat it as you would
any other sensitive personal data.

·You should carefully select a Passcode
that is hard to guess.

·You should not use words based on your
name, address or other personal information.

·Special characters must be used to
increase security.

·Do NOT use dictionary words. The “Help”
link within the Service will offer tips on choosing a secure Passcode that you
can remember.

·Keep your Passcode safe.

·Memorize your Passcode and do NOT write
it down.

·You must also change your Passcode occasionally,
such as every 90 days.

·A Passcode should be changed
immediately if you suspect that your Passcode has been compromised. This can be
done at any time from the “User Services” menu after you log on to the Service.

NEITHER THIS INSTITUTION NOR ITS
SERVICE PROVIDERS WILL CONTACT YOU VIA TELEPHONE OR EMAIL REQUESTING PERSONAL
INFORMATION, YOUR ACCESS ID, OR YOUR PASSCODE. IF YOU
ARE CONTACTED BY ANYONE REQUESTING THIS INFORMATION, PLEASE CONTACT US
IMMEDIATELY.

Encryption – The Service uses the Secure
Socket Layer (SSL) encryption technology for everything you do while using
Internet banking. Your browser automatically activates this technology when it
attempts to connect to our Service. The Service requires a browser that
supports 128-bit encryption. The Service will warn you if your browser does not
meet this requirement.

Whenever SSL is securing your
communications, the browser will typically indicate this secure session by
changing the appearance of a small icon of a padlock at the bottom of the
screen from “open” to “locked”. What this means to you is that your
communications are scrambled from your browser to our servers at all times so
no unauthorized party can read the information as it is carried over the
Internet.

Certificate Authority – The servers
hosting the Service have been certified by a Certificate Authority to assure
you that you are actually talking to the Service instead of someone pretending
to be us. If you are using an older browser, such as anything prior to versions
4.0 on Netscape Navigator or Internet Explorer, you will see that the
Certificate Authorities key may have expired; you will need to update your
browser. Instructions for upgrading your browser are located on the Browser SSL
Update link, which is located on the Service login page. By clicking on the
lock within the Service, you can view the certificate to ensure it’s valid.

Cookies – During your use of the
Service, our Internet banking Service Provider will pass an encrypted cookie to
your computer in order to identify your computer during the session. This
cookie enables us to process multiple transactions during the session without
having to provide an Access ID and Passcode for each individual transaction.
Users must accept this cookie to use the Service. This cookie does not contain
any personal information; it simply provides another level of security for our
Internet banking product. The cookie is stored on your computer’s hard-drive,
identifying your computer while you are logged on. When you log off, close your
browser, or turn off your machine, the cookie will be destroyed. A new cookie
is used for each session; thus, no one can use the prior cookie to access your
account.

Additional
Security Guidelines:

·All Authorized Users should sign-off
after every Service session; however, online sessions will automatically end
after thirty (30) minutes of inactivity. This to protect you in case you
accidentally leave your computer unattended after you log-in.

·The security of public computers (e.g.
in a library, or Internet café) cannot be assured; therefore we recommend that
you refrain from accessing the Service on a public computer.

·Routinely scan your computer, servers,
and electronic media using a reliable virus detection product. Undetected or
un-repaired viruses may corrupt and destroy your programs, files, and even your
hardware. Additionally, you may unintentionally transmit a virus to other
computers.

·Use a firewall product (hardware and/or
software), especially if you have a broadband Internet connection such as DSL
or cable modem.

·Periodically update your computer
operating system and browser for critical security related patches. We
recommend use of the most current, fully patched, versions of Internet browsers
for accessing the Service.

19. Your Passcode Responsibilities

When you accept the terms and
conditions of this Agreement, you agree not to give or make available your
passcode or other means to access your account to any unauthorized individuals.
You are responsible for all transfers and Bill Payments you authorize using the
Service. If you permit other persons to use the Service, your passcode, or
other means to access your account, you are responsible for any transactions
they authorize.

If you believe that your passcode or
other means to access your account has been lost or stolen or that someone may
attempt to use the Service without your consent or has transferred money
without your permission, you must notify us at once by calling (254) 840-2836
during customer service hours. You can also contact us by sending a secure
message through the Service.

IF YOU OR YOUR AUTHORIZED USERS
DISCLOSE YOUR PASSCODE TO ANYONE, AND/OR IF YOU ALLOW SOMEONE TO USE YOUR
PASSCODE TO ACCESS YOUR ACCOUNTS, YOU ARE AUTHORIZING THEM TO ACT ON YOUR
BEHALF AND YOU WILL BE RESPONSIBLE FOR ANY USE OF THE SERVICE BY THEM (E.G.,
SUCH AS WHEN YOU PROVIDE THIS INFORMATION TO A JOINT ACCOUNT HOLDER, AN
EMPLOYEE, AND/OR AN AGGREGATION SERVICE PROVIDER).

In addition to the security features
described above, there may be other security related notices posted on our
website or the Service from time-to-time. It is your responsibility to read all
security notices.

20. Our Liability for Failure to
Complete Transactions

We will use commercially reasonable
efforts to make all your transfers and Bill Payments properly. However, we
shall incur no liability and any Bill Payment Service Guarantee shall be void
if we are unable to complete any transactions initiated by you because of the
existence of any one or more of the following circumstances:

1.If, through no fault of ours, your
Eligible Account(s) and/or Payment Account does not contain sufficient funds to
complete the transaction or the transaction would exceed the credit limit of
your overdraft account (if applicable);

2.The Service and/or the payment
processing center is not working properly and you know or have been advised by
this Institution and/or its Service Providers about the malfunction before you
execute the transaction;

3.You have not provided the Service with
the correct Payment Account information, or the correct name, address, phone
number, or account information for the Biller;

4.Your Eligible Account(s), including
either your Payment Account or Billing Account, is closed;

5.If your computer, software,
telecommunication lines were not working properly and this problem should have
been apparent to you when you attempted the transfer or Bill Payment;

6.It can be shown that the Biller
received the Bill Payment within the normal delivery timeframe and failed to
process the payment through no fault of ours;

8.We have reason to believe that a
payment or other transaction request may not be authorized by you or any third
party whose authorization we believe is necessary; and/or

9.Circumstances beyond control of the
Service, our Service Providers, and this Institution (such as, but not limited
to, fire, flood, or interference from an outside force) prevent the proper
execution of the transaction and we have taken reasonable precautions to avoid
those circumstances.

Provided none of the foregoing
exceptions are applicable, if the Service causes an incorrect amount of funds
to be removed from any of your Eligible Account(s), or Payment Account ,or
causes funds from your Payment Account to be directed to a Biller, which does
not comply with your Payment Instructions, this Financial Institution and/or
its Service Providers shall be responsible for returning the improperly
transferred funds to your Payment Account, and for directing to the proper
Biller any previously misdirected transactions, and, if applicable, for any
late payment related charges.

21. Documentation And
Verification Of Payments And Transfers

Information regarding Internet Banking
and Bill Payment transactions will be reflected on the account detail in the
Service and in your regular monthly account statement(s).

In
case of errors or questions about your electronic transactions, you should
notify us as soon as possible through one of the following methods:

·Telephone us at (254) 840-2836 during
customer service hours;

·Contact us by using the secure
messaging feature within the Service; or

·Write to us at P O Box 387, McGregor,
TX 76657-0387

If
you think your statement is incorrect or you need more information about an
electronic transfer or Bill Payment transaction listed on the statement, we
must hear from you no later than sixty (60) days after the FIRST statement was
sent to you on which the problem or error appears. You must:

2.Describe the error or the transaction
in question, and explain as clearly as possible why you believe it is an error
or why you need more information; and,

3.Tell us the dollar amount of the
suspected error.

If you tell us verbally, we may require
that you send your complaint in writing within ten (10) Business Days after
your verbal notification. We will tell you the results of our investigation
within ten (10) Business Days after we hear from you, and will correct any
error promptly. However, if we require more time to confirm the nature of your
complaint or question, we reserve the right to take up to forty-five (45) days
to complete our investigation. If the complaint involves an
electronic fund transfer resulting from a point-of-sale debit card transaction,
the applicable time period for investigation will be 90 calendar days in place
of 45 calendar days. If we decide to do this, we will
provisionally credit your account within ten (10) Business Days for the amount
you think is in error. If we ask you to submit your complaint or question in
writing and we do not receive it within ten (10) Business Days, we may not
provisionally credit your account.

For errors regarding electronic
transactions on new consumer accounts, we may take up to 90 days to investigate
your complaint or question. We may take up to 20 Business Days to credit a new
account for the amount you think is in error.

If you believe your Visa Check card
has been lost or stolen or that someone has transferred or may transfer money
from your account without your permission, call or write us at the telephone
number and address listed below:

If it is determined there was no error,
we will mail you a written explanation within three (3) Business Days after
completion of our investigation. You may ask for copies of documents used in
our investigation. The Service may revoke any provisional credit provided to
you if we find an error did not occur.

(B) Consumer Liability for Unauthorized
Transfers
Tell us AT ONCE if you believe your Access ID or Passcode has been lost or
stolen. Telephoning is the best way of minimizing your possible losses. You
could lose all the money in your account (plus your maximum overdraft line of
credit if applicable).

If consumer customers tell us within
two (2) Business Days after you discover your password or other means to access
your account has been lost or stolen, your liability is no more than $50.00
should someone access your account without your permission. If you do not tell
us within two (2) Business Days after you learn of such loss or theft, and we
can prove that we could have prevented the unauthorized use of your password or
other means to access your account if you had told us, you could be liable for
as much as $500.00.

If your monthly account statement
contains transfers that you did not authorize, you must tell us at once. If you
do not tell us within sixty (60) days after the statement was sent to you, you
may lose any amount transferred without your authorization after the sixty (60)
days if we can prove that we could have stopped someone from taking the money
had you told us in time. If a good reason (such as a long trip or a hospital
stay) prevented you from telling us, we may extend the period.

23. Additional Provisions Applicable
Only To Business Customers

(A) Protecting Your Account
The Service will allow Business Customers to establish individual Access IDs,
passcodes, privileges for each Authorized User. Transaction history is
maintained for each Access ID. Additional fees maybe
assessed for each Access ID.

BUSINESS CUSTOMER(S) WILL BE SOLELY
RESPONSIBLE FOR DESIGNATING ITS AUTHORIZED USERS, ASSIGNING PRIVILEGES, AND
DISCLOSING THE IDENTITY OF SAID USERS TO THIS INSTITUTION AND ALL CHANGES
THEREOF IN WRITING BUSINESS CUSTOMER REPRESENTS AND WARRANTS THAT ITS AUTHORIZED
USERS HAVE THE APPROPRIATE AUTHORITY TO INITIATE TRANSFERS AND BILL PAYMENTS
THROUGH THE SERVICE.

BUSINESS CUSTOMER AUTHORIZES THIS
INSTITUTION AND ITS SERVICE PROVIDERS TO ACT UPON, AND YOU AGREE TO BE BOUND
BY, ANY TRANSACTION, WHETHER OR NOT AUTHORIZED, THAT IS INITIATED WITH YOUR
ACCESS ID AND PASSCODE AND/OR THE ACCESS ID AND PASSCODE OF AN AUTHORIZED USER.
FURTHERMORE, ANY INSTRUCTIONS, DIRECTIONS, OR OTHER INFORMATION PROVIDED BY THE
BUSINESS CUSTOMER, OR ANY OF ITS AUTHORIZED USERS, WILL BE DEEMED TO HAVE BEEN
AUTHORIZED BY THE BUSINESS CUSTOMER. THIS FINANCIAL INSTITUTION AND ITS SERVICE
PROVIDERS WILL NOT BE RESPONSIBLE FOR VERIFYING THE IDENTITY OR AUTHENTICITY OF
ANY PERSON CLAIMING TO BE AN AUTHORIZED USER OF THE BUSINESS CUSTOMER.

BUSINESS CUSTOMER ASSUMES ANY AND ALL
LIABILITY ARISING FROM THE USE OR MISUSE OF THE SERVICE OR COMPANY ACCOUNTS BY
ITS AUTHORIZED USERS. BUSINESS CUSTOMER AGREES TO INDEMNIFY AND HOLD HARMLESS
THIS FINANCIAL INSTITUTION AND ITS SERVICE PROVIDERS FOR ANY LIABILITY AND
DAMAGES RESULTING FROM OUR ACTING UPON ANY DIRECTION, INSTRUCTION, OR
INFORMATION THAT IS INITIATED WITH AN ACCESS ID AND PASSCODE OF AN AUTHORIZED
USER.

YOU AGREE THAT WE MAY SEND NOTICES AND
OTHER COMMUNICATIONS, INCLUDING EMAILS, TO THE CURRENT ADDRESS SHOWN IN OUR
RECORDS, WHETHER OR NOT THAT ADDRESS INCLUDES A DESIGNATION FOR DELIVERY TO THE
ATTENTION OF ANY PARTICULAR INDIVIDUAL. YOU FURTHER AGREE THAT FINANCIAL
INSTITUTION NAME AND/OR ITS SERVICE PROVIDERS WILL NOT BE RESPONSIBLE OR LIABLE
TO YOU IN ANY WAY IF INFORMATION IS INTERCEPTED BY AN UNAUTHORIZED PERSON,
EITHER IN TRANSIT OR AT YOUR PLACE OF BUSINESS. IN ADDITION, YOU AGREE TO

·IMMEDIATELY NOTIFY US AND SELECT A NEW
PASSWORD IF YOU OR YOUR AUTHORIZED USERS BELIEVE YOUR PASSCODES MAY HAVE BECOME
KNOWN TO AN UNAUTHORIZED PERSON.

WE MAY DISABLE PASSCODES OF AUTHORIZED
USERS EVEN WITHOUT RECEIVING SUCH NOTICE FROM YOU, IF WE SUSPECT PASSCODES ARE
BEING USED IN AN UNAUTHORIZED OR FRAUDULENT MANNER.

BUSINESS CUSTOMERS SHALL BE SOLELY
RESPONSIBLE FOR THE DEVELOPMENT AND IMPLEMENTATION OF ALL COMMERCIALLY
REASONABLE PROCEDURES TO CONTROL ACCESS TO THEIR COMPUTER SYSTEMS AND TO
PROTECT ANY DATA FILES STORED THEREON. BUSINESS CUSTOMERS SHALL BE SOLELY
RESPONSIBLE FOR ALL APPROPRIATE AND COMMERCIALLY REASONABLE, PHYSICAL, LOGICAL,
AND NETWORK SECURITY SYSTEMS AND DEVICES TO PROTECT THE SECURITY OF DATA FILES
MAINTAINED ON COMPUTER(S) USED TO ACCESS THE SERVICE AS WELL AS THE PROTECTION
AGAINST UNAUTHORIZED ACCESS TO BUSINESS COMPUTERS, AND/OR NETWORKS USED TO
ACCESS THE SERVICE. BUSINESS CUSTOMERS SHALL BE SOLELY RESPONSIBLE FOR ANY AND
ALL LOSSES AND DAMAGES ARISING FROM ANY AUTHORIZED OR UNAUTHORIZED ACCESS TO
THE SERVICE.

THIS FINANCIAL INSTITUTION AND ITS
SERVICE PROVIDERS SHALL HAVE NO OBLIGATION, LIABILITY OR CONTROL, EITHER
DIRECTLY OR INDIRECTLY CONCERNING THE BUSINESS CUSTOMERS’ SELECTION OF SECURITY
SYSTEMS OR DEVICES FOR THE PROTECTION OF ANY DATA FILES OR COMPUTERS USED TO
ACCESS THE SERVICES OR OVER BUSINESS CUSTOMERS DEVELOPMENT OR IMPLEMENTATION OF
SECURITY PROCEDURES OR THE FAILURE OF BUSINESS CUSTOMER TO MAINTAIN SAID
PROCEDURES.

(B) Commercially Reasonable Security
Procedures of the Service
WHEN YOU ACCEPT THIS AGREEMENT AND USE THE SERVICE, YOU ACKNOWLEDGE AND AGREE
THAT THE SERVICE INCLUDES SECURITY MEASURES WHICH ARE COMMERCIALLY REASONABLE.
YOU AGREE TO BE BOUND BY OUR SECURITY PROCEDURES AND INSTRUCTIONS, WHICH MAY BE
PERIODICALLY UPDATED. YOU AGREE TO REVIEW AND IMPLEMENT ALL SECURITY PROCEDURES
AVAILABLE IN CONNECTION WITH THE SERVICE, INCLUDING PROCEDURES TO PROTECT THE
CONFIDENTIALITY OF YOUR ACCESS ID AND PASSCODE AND THE SAME FOR YOUR AUTHORIZED
USERS. YOU AGREE TO NOTIFY THIS FINANCIAL INSTITUTION IN THE EVENT THAT YOUR
USE OF THE SERVICE WOULD NECESSITATE OR BE BETTER SERVED BY A LEVEL OF SECURITY
THAT EXCEEDS THAT OFFERED BY THE SERVICE. IF YOU FAIL TO NOTIFY THIS FINANCIAL
INSTITUTION, YOU ACKNOWLEDGE AND AGREE THAT THE SECURITY ASPECTS OF THE SERVICE
ARE APPROPRIATE FOR YOUR NEEDS AND WILL PROVIDE YOU WITH A COMMERCIALLY
REASONABLE DEGREE OF SECURITY AGAINST UNAUTHORIZED USE.

(C) Errors and Questions
In case of errors or questions about your transactions, you should as soon as
possible notify us through one of the following methods:
Telephone us at (254) 840-2836 during customer service hours;
Write us at: P O Box 387, McGregor, TX 76657

(D) Your Liability for Unauthorized
TransfersYou must notify us of errors, discrepancies, or
possible unauthorized payments as soon as possible upon learning of the
discrepancy. If you fail to notify us within sixty (60) days after you have
received notice of an unauthorized or erroneous transfer or Bill Payment, The
First National Bank of McGregor will not owe you any interest on the amount in
question, even if we are otherwise liable to you in connection with the
transaction.
The First National Bank of McGregor and its Service providers shall have no
liability to you for any unauthorized payment or transfer made using your
passcode that occurs before you have notified us of any possible unauthorized
use and we have had a reasonable opportunity to act upon that notice.
If you fail to notify us of any discrepancy within one (1) year, you shall be
precluded from asserting any such discrepancy against us.

(E) Limitation of Institution Liability
THIS FINANCIAL INSTITUTION AND ITS SERVICE PROVIDERS WILL BE DEEMED TO HAVE
EXERCISED ALL DUE CARE AND TO HAVE ACTED REASONABLY IF WE ACT IN ACCORDANCE
WITH THE TERMS OF THIS AGREEMENT AND WILL BE LIABLE FOR LOSS SUSTAINED BY YOU
ONLY TO THE EXTENT SUCH LOSS IS CAUSED BY OUR MISCONDUCT. THIS FINANCIAL
INSTITUTION AND ITS SERVICE PROVIDERS WILL HAVE NO LIABILITY FOR ANY LOSS OR
DAMAGE:

·RELATED TO THE DISHONESTY OF THE
BUSINESS CUSTOMER’S EMPLOYEES, OFFICERS, AGENTS OR AUTHORIZED USERS;

·RESULTING FROM ANY RECEIVING FINANCIAL
INSTITUTION’S FAILURE TO ACCEPT ANY PAYMENT OR FUNDS TRANSFER REQUEST;

·RESULTING FROM ANY DELAY IN THE
PERFORMANCE OF THIS AGREEMENT, WHICH IS CAUSED BY AN ACT OF GOD, FIRE OR OTHER
CASUALTY, ELECTRICAL OR COMPUTER FAILURE, DELAYS OR FAILURE TO ACT BY ANY
CARRIER, MEDIUM OR AGENT OPERATING BETWEEN THE FIRST NATIONAL BANK OF MCGREGOR
AND THIRD PARTIES, OR ANY OTHER CONDITION OUTSIDE OF OUR CONTROL.

IF THIS FINANCIAL INSTITUTION AND/OR
ITS SERVICE PROVIDERS FAIL OR DELAY IN MAKING A TRANSFER OR BILL PAYMENT
PURSUANT TO YOUR INSTRUCTION, OR IF WE MAKE A TRANSFER OR PAYMENT IN AN
ERRONEOUS AMOUNT WHICH IS LESS THAN THE AMOUNT PER YOUR INSTRUCTION, UNLESS
OTHERWISE REQUIRED BY LAW OUR LIABILITY SHALL BE LIMITED TO INTEREST ON THE
AMOUNT WHICH WE FAILED TO TIMELY PAY, CALCULATED FROM THE DATE ON WHICH THE
PAYMENT WAS TO BE MADE UNTIL THE DATE IT WAS ACTUALLY MADE OR YOU CANCELED THE
IINSTRUCTION.

WE MAY PAY SUCH INTEREST EITHER TO YOU
OR THE INTENDED RECIPIENT OF THE PAYMENT, BUT IN NO EVENT WILL WE BE LIABLE TO
BOTH PARTIES, AND OUR PAYMENT TO EITHER PARTY WILL FULLY DISCHARGE ANY
OBLIGATION TO THE OTHER. IF WE MAKE A PAYMENT IN AN ERRONEOUS AMOUNT WHICH
EXCEEDS THE AMOUNT PER YOUR PAYMENT INSTRUCTION, OR IF WE PERMIT AN
UNAUTHORIZED PAYMENT AFTER WE HAVE HAD A REASONABLE TIME TO ACT ON A NOTICE
FROM YOU OF POSSIBLE UNAUTHORIZED USE AS DESCRIBED ABOVE, UNLESS OTHERWISE
REQUIRED BY LAW, OUR LIABILITY WILL BE LIMITED TO A REFUND OF THE AMOUNT
ERRONEOUSLY PAID, PLUS INTEREST THEREON FROM THE DATE OF THE PAYMENT TO THE
DATE OF THE REFUND, BUT IN NO EVENT TO EXCEED SIXTY (60) DAYS INTEREST.

IF WE BECOME LIABLE TO YOU FOR INTEREST
COMPENSATION UNDER THIS AGREEMENT OR APPLICABLE LAW, SUCH INTEREST SHALL BE
CALCULATED BASED ON THE AVERAGE FEDERAL FUNDS RATE AT THE FEDERAL RESERVE BANK
IN THE DISTRICT NEAREST TO THE FIRST NATIONAL BANK OF MCGREGOR FOR EACH DAY
INTEREST IS DUE, COMPUTED ON THE BASIS OF A THREE HUNDRED SIXTY (360) DAY YEAR.

NO THIRD PARTY WILL HAVE RIGHTS OR
CLAIMS AGAINSTTHE FIRST NATIONAL BANK OF MCGREGOR AND ITS SERVICE PROVIDERS
UNDER THIS AGREEMENT. THE TERMS OF THIS SECTION WILL SURVIVE TERMINATION OF
THIS AGREEMENT.

(F) Indemnification
Business Customer(s) and its Authorized Users will defend, indemnify and hold
harmless The First National Bank of McGregor and its Service Providers against
and in respect to any and all loss, liability, expense and damage, including
consequential, special and punitive damages, directly or indirectly resulting
from: (i) the processing of any request received by
The First National Bank of McGregor through the Service, (ii) any breach of the
provisions of this Agreement (iii) any request for stop payment; (iv) any
dispute between you and any third party in connection with the use of the
Service; and (v) any and all actions, suits, proceeding, claims, demands,
judgments, costs and expenses (including attorney’s fees) incident to the
foregoing. The terms of this section will survive termination of this
Agreement.

24. Alterations and Amendments

This Agreement, applicable fees and
service charges may be altered or amended from time-to-time. In such event, we
will provide notice to you. Any use of the Service after we provide you a
notice of change will constitute your agreement to such change(s). Further, we
may, from time to time, revise or update the applications, services, and/or
related material, which may render all such prior versions obsolete.
Consequently, we reserve the right to terminate this Agreement as to all such
prior versions of the applications, services, and/or related material and limit
access to only the Service’s more recent revisions and updates.

25. Electronic Disclosures

We may deliver amendments to this
Agreement and other disclosures to you in an electronic format. Other
disclosures may include: monthly account statements, deposit account
disclosures, notices regarding changes in account terms and fees, and privacy
notices. The equipment necessary for accessing these types of disclosures
electronically is described within this Agreement in Section 8.

WITH YOUR ACCEPTANCE BELOW, YOU AGREE
TO ACCEPT THIS AGREEMENT AND OTHER INTERNET BANKING RELATED DISCLOSURES IN AN
ELECTRONIC FORMAT. YOU ALSO AGREE AND REPRESENT THAT YOU HAVE THE NECESSARY
EQUIPMENT FOR ACCESSING THE SERVICE AND FOR VIEWING ELECTRONIC DISCLOSURES.

You may change the method of delivery
at any time (e.g., from electronic format to paper format) by contacting us at
(254) 840-2836.

In addition, you can request paper
copies of documents through the Service free of charge. Additional fees for
paper copies of account statements may be imposed depending on the type of
account you have and/or the reason and frequency of your requests for paper
copies.

If you enroll for the Service in one of
our office locations, we will send you an e-mail and ask you to confirm your
ability to access the Service and related its related online disclosures. We
may ask you to confirm by sending us a secure message through the Service.

26. Address, E-mail, or Payment Account
Changes

When you enroll in the Service, we may
send you a “Welcome” e-mail. We will also send you e-mails and/or secure
messages through the Service regarding important Internet Banking and Bill
Payment matters and/or changes to this Agreement. You must provide us your
current e-mail address in order for us to deliver this information to you.
It is your sole responsibility to ensure that your contact information is
current and accurate. This includes, but is not limited to, name, address,
phone numbers, and e-mail addresses. Changes can be made either within the
Service in the User Services menu or by contacting our Internet Banking
Department at (254) 840-2836.
Any changes to your Eligible Account(s), Payment Account, or Billing Account
should also be made in accordance with the procedures outlined above.

We are not responsible for any Bill
Payment processing errors or fees incurred if you do not provide accurate
Payment Account or contact information.

27. Service Termination, Cancellation,
or Suspension

In the event you wish to cancel the
Service, please contact our Internet Banking Department or send us a secure
email through the Service.

Any Bill Payment(s) the Service has
already processed before the requested cancellation date will be completed by
the Service. All Scheduled Bill Payments, including automatic payments, will
not be processed once the Service is cancelled. You will remain responsible for
any fees associated with the Service prior to the effective cancellation date.

We may terminate or suspend the Service
to you at any time. Neither termination nor suspension shall affect your
liability or obligations under this Agreement.

Access to our Service may be canceled
in whole or part without prior notice due to insufficient funds in one of your
accounts or other circumstances that may create an unanticipated liability to
us. If your account(s) is closed or restricted for any reason, or if there has
not been any Internet Banking or Bill Payment activity for a period of [6]
consecutive months, accessibility will automatically terminate.

After termination or suspension of the
Service, we may consider reinstatement once sufficient funds are available in
your accounts to cover any fees and other pending transfers or debits. In order
to request reinstatement of the Service, you must call our Internet Banking
Department.

28. Exclusions of Warranties and
Limitation of Damages

THE SERVICE AND RELATED DOCUMENTATION
ARE PROVIDED “AS IS”, “AS AVAILABLE” WITHOUT WARRANTY OF ANY KIND, EITHER
EXPRESSED OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

NOTWITHSTANDING OUR EFFORTS TO ENSURE
THAT THE SERVICE IS SECURE, WE CANNOT AND DO NOT
WARRANT THAT ALL DATA TRANSFERS VIA THE SERVICE WILL BE FREE FROM MONITORING OR
ACCESS BY OTHERS.

YOU ARE SOLELY RESPONSIBLE FOR THE
MAINTENANCE, INSTALLATIONS, AND OPERATION OF YOUR COMPUTER. NEITHER THIS
FINANCIAL INSTITUTION NOR ITS SERVICE PROVIDERS SHALL BE RESPONSIBLE FOR ANY
DELAYS, ERRORS, DELETIONS, OR FAILURES THAT OCCUR AS A RESULT OF ANY
MALFUNCTION OF YOUR COMPUTER OR SOFTWARE.,

THE FOREGOING SHALL CONSTITUTE THE
FIRST NATIONAL BANK OF MCGREGOR AND ITS SERVICE PROVIDER’S ENTIRE LIABILITY AND
YOUR EXCLUSIVE REMEDY. IN NO EVENT SHALL THE FIRST NATIONAL BANK OF MCGREGOR OR
ITS SERVICE PROVIDERS BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL, INCIDENTAL,
CONSEQUENTIAL, OR EXEMPLARY DAMAGES, INCLUDING LOST PROFITS OR ATTORNEYS FEES
(EVEN IF ADVISED OF THE POSSIBILITY THEREOF) ARISING IN ANY WAY OUT OF THE
INSTALLATION, USE, OR MAINTENANCE OF THE EQUIPMENT, SOFTWARE, AND/OR YOUR USE
OF THE SERVICE.

29. Assignment

You may not assign this Agreement to
any other party. We may assign this Agreement in our sole discretion. We may
also assign or delegate certain of our rights and responsibilities under this
Agreement to independent contractors or other third parties.

30. No Waiver

This Financial Institution and its
Service Providers shall not be deemed to have waived any of our rights or
remedies hereunder unless such waiver is in writing and signed by us. No delay
or omission in exercising any rights or remedies shall operate as a waiver of
such rights or remedies or any other rights or remedies. A waiver on any one
occasion shall not be construed as a bar or waiver of any rights or remedies on
future occasions.

31. Captions

The captions of sections hereof are for
convenience only and shall not control or affect the meaning or construction of
any of the provisions of this Agreement.

32. Disputes

In the event of a dispute regarding the
Service, you agree to resolve the dispute by looking to this Agreement. You
agree that this Agreement is the complete and exclusive statement of the
agreement between you and us, which supersedes any proposal or prior agreement,
oral or written, and any other communications between you and us relating to
the subject matter of this Agreement. If there is a conflict between what the
employees of this financial institution and/or its Service Providers say and
the terms of this Agreement, the terms of this Agreement will prevail.

33. Waiver of Trial by Jury

The parties hereby knowingly,
voluntarily and intentionally waive any right they may have to a trial by jury
with respect to any litigation brought based upon this Agreement, or arising
out of, under, or in connection with this Agreement and any agreement
contemplated to be executed in conjunction herewith, or any course of conduct,
course of dealing, statements or actions of the parties. This provision is a
material inducement for the parties entering this Agreement.

34. Ownership of Material

Copyright in the pages and in the
screens displaying the pages, and in the information and material therein and
in their arrangement, is owned by The First National Bank of McGregor and/or is
Service Providers unless otherwise indicated. All registered and unregistered
trademarks used in the Service are the sole property of their respective
owners. Unauthorized reproduction in whole or part is prohibited.

35. Governing Law and Relation to Other
Agreements

Accounts and services provided by this
Financial Institution may also be governed by separate agreements with you.
This Agreement supplements any other agreement(s) and/or disclosures related to
your Eligible Account(s) and provided to you separately.

This Agreement shall be governed by and
construed in accordance with federal laws and the laws of the State of Texas
without regard to its conflicts of laws provisions;
provided, however, that any dispute solely between you and our Bill Payment
Service Provider shall be governed by and construed in accordance with the laws
of the State of Texas, without regard to its conflicts of laws
provisions.

36.E-SIGN Agreement and Compliance

Your electronic enrollment in internet
banking demonstrates your acceptance of the agreement and your ability to
access forms and notices on line.

The First National Bank of McGregor is
in compliance with the E-Sign Act.